Chrysler’s implosion continued unchecked in October, with sales down 30% from October 2008. Here are some of the details: Sebring: -32%; 300: -15%; PT Cruiser: -96%; Aspen: -95%; Chrysler brand Total: -36%.
Jeep fared only slightly less badly: Compass: -62%; Patriot: -65%; Wrangler: -16%; Liberty: -30%; Grand Cherokee: -42%; Commander: -47%; Jeep Brand Total: -37%
The (non Ram)Dodge was the bright spot: Caliber: -87%; Avenger: +13%; Charger: -22%; Challenger: -20%; Journey: -16%; Caravan: +8%; Nitro: -42%; Durango: -95%; Dodge Brand Total: -22%
And the (un Dodge) Rams: Dakota: -46%; Ram P/U: -30%; Sprinter: -52%; Total Ram: -32%
Total year-to-date sales for all Chrysler vehicles: -39% And the beat goes on.
Continuing its recession-defying act, Subaru posted a 41% climb in October sales over last year. That makes it the fifth straight month of sales increases, and a stellar 13% increase year-to-date. AWD traction for the win! Subaru does tend to do well well with the highly educated demographic, which has been proportionately less impacted in the recession.
The first number are in, and Ford has posted a 3% increase over last year’s miserable October results. Year to date, Ford is still down 21%. But the good news is that Ford has posted increases in three of the last four months. Taurus more than doubled and deliveries to retail customers almost tripled from year-earlier levels. Fusion was up 24 percent, and the Lincoln MKZ sedan increased 27 percent. More details later…
Maryland cities will create brand new “school zones” in an attempt to issue speed camera tickets on roads that previously had no need of the designation. When the state legislature authorized speed cameras six months ago in response to a $690,506 lobbying campaign from photo ticketing and insurance companies, lawmakers mandated that the cameras could only be used within a half mile of a school zone. Baltimore is among the first to admit that it will bypass that restriction. “You asked if the locations for speed cameras were all pre-existing school zones,” Baltimore engineer Rainna P. Strauss wrote in an email exchange obtained by the StopBigBrotherMD.org website. “No they were not.”
“First question: Is the 2010 Honda Accord Crosstour as unattractive in the flesh as it is in photographs?” Automotive News [sub] asks itself. “Answer: Pretty darned close. Directly from behind — and directly from the side — Honda’s new crossover-meets-wagon looks appealing. But from any other perspective, the Crosstour’s confluence of angles is visually jarring, especially in how the swooping a-pillar meets the hood line.” This is it: the day that the editorial collusion known as the Crosstour press embargo ends. For some reason, Honda forgot to invite TTAC to the ho-down. Never mind. Until we see the sheet metal, we’ll rely on yet another round of press shots and word-of-mouth. Or, more precisely, I threw-up-in-my mouth-a-little. While we wait for Autoblog for the official weasel words (“Honda has also released tons of new Accord Crosstour glamor shots”), suffice it to say Honda’s drubbing will not be anywhere near as severe as what awaits Toyota on tonight’s edition of ABC News and Nightline. The network has fired an opening salvo on the internet, and it ain’t gonna help ToMoCo recover lost sales ground one little bit. So here’s MY first question: how much of Toyota’s $1.665 billion ad budget does ABC reap? Just curious . . .
You can certainly understand the feds’ desire to make GM’s nationalization look like a temporary measure rather than the economic quagmire that is was, is and will be. But anyone with half a brain knew that the not-so-dynamic duo’s suggestion of a 2010 share offering was about as believable as the idea that the U.S. government can save money by creating a new entitlement program. OK, less. Add Jerry York to that half-a-cranium club. Speaking at The Reuters Auto Summit, the ex-ChryCo exec, former GM board member and Kirk Kerkorian front man called any discussion of a 2010 GM IPO the “dumbest thing in the world.” Seems that “They’re not going to be able to make up all the volume that they had with the four brands they are shedding with four brands they are retaining . . . I think that inevitably their market share is going to go down a point or two just by virtue of shedding those four brands.” Saying that, after saying that, Jer’ added some kind words to his piercing glimpse into the obvious. Mr. York praised New GM’s old management. “They’ve done a lot of the right things and we’ll all know in another six to nine months whether they need to do more structurally.” I’m guessing . . . yes!
The dance of EV partners has a new breakup: in a sign of the quickly changing and consolidating EV landscape, Green Car Congress reports that Ford and Smith Electric Vehicles have terminated their partnership to build the electric Transit Connect for the US. UK based Smith, which is gearing up production of its electric Newton truck, has decided not to dissipate its energy and development dollars on the light delivery Transit Connect, and stay focused on its larger truck and existing Ford partnership for the UK . Smith expressed concern that the market for electric car-derived vans would become increasingly competitive; a competition that’s being fueled by the numerous DOE loans to battery and EV makers. And leading inevitably to competitive advantages to those with the largest scale of production efficiencies. Ford announced it will instead partner with with Azure Dynamics Corporation to deliver a pure battery electric Ford Transit Connect van for the United States and Canadian markets in 2010.
Back in 1994, supremebrougham helped one of his old high school teachers shop for a car. [NB: “she’s really not old, she’s a vibrant and elegant 50-something that hasn’t changed a bit since the early 90’s.”] She ended-up buying a new Camry LE (not shown). And now she’s looking for another whip. She lives in central Florida (AWD need not apply) and she doesn’t want to spend over $30,000.
I have had an oil leak for about two years. A trust-worthy mechanic suggested I just let it go; just check and replenish the oil as needed. I just bought a new window motor, yet my locks are still unpredictable. Plus the passenger front handle broke off two weeks ago when a a passenger didn’t listen when I insisted that I needed time unlocking her door. I don’t want to put any more money into it. The lovely green machine has served me very well, but I am feeling just a tad unsure about taking it for rides entailing more than local traffic. What do you think of the CR-V or Rav4? Anything by Kia or Hyundai? I am not sure if I want a sedan or one of the little SUV’s. What do you think of the Camry hybrid? I have also noticed the good reviews on the Fusion lately!
I know I “raised” expectations with the previous post on the beautiful Charlene. And so I feel obliged—obliged I tell you—to provide the denouement to what could well be the sleaziest sexploitation perpetuated by anyone even remotely connected to the automotive industry. I think we can all learn a lesson here: lock up your daughters. And if any member or our B&B needs more vigorous instruction on this matter, Google “Standing and Modeling” using only the first letters of each word.
According to a speed camera citation that landed in his mailbox on October 10, motorcyclist Paolo Turina blasted past a speed camera at 616km/h (383 MPH). Last month, Turina had been riding his Moto Guzzi motorcycle in the municipality of Cernusco Lombardone in Lombardy when a Telelaser Ultralyte device recorded him passing by. The letter from the municipal police suggested that Turina had exceeded the fastest recorded MotoGP race speed of 217 MPH, set in June by Dani Pedrosa at the Mugello, Italy, by 166 MPH. Municipal police admitted the speed may have been printed on the ticket in error, but that the citation itself was valid.
I’m thinking about opening a car factory. A really small one. Tata would sell me their Nano in kit form. I’d have it assembled (using cheap Chinese labor, of course) and sell it as the Bertel car. Entirely possible. Tata may allow small car assemblers to put together its Nano and sell it under their own brand, India’s Business Standard reports via Reuters.
GM was given its last $30B of taxpayer money as it entered bankruptcy in early June of this year. By the time GM exited Chapter 11 protection on July 10, there was only $16.4B left in its bailout escrow account. According to an 8-K form filed today with the SEC, GM now has only $13.6B remaining in that account, less than one-third of GM’s $50B total bailout (not counting assistance to GMAC). GM’s rescue of its major supplier, Delphi, consumed $2.8 billion from its escrow account. According to the form:
Approximately $1.7 billion was utilized to acquire a membership interest in the new Delphi entity and approximately $1.1 billion was expended in the acquisition of Delphi’s global steering business, certain domestic facilities and other related payments
Next up in today’s series “Selections from the GAO report on the auto bailout which closely resemble TTAC editorials of a year ago” we have the report’s discussion of a possible exit strategy. Or rather, the report’s disclosure that there’s so not an exit strategy it hurts. From the report’s conclusions:
While Treasury has stated that it plans to review all possible options for divesting itself of its ownership interest in Chrysler and GM, Treasury officials have focused primarily on an IPO for GM, both in our discussions with them and in their public statements. However, given the complexity of the economy and the financial markets, considering all of the options in the context of the companies’ financial progress and current financial conditions will be important for Treasury. The past year has indicated the extent to which a company’s financial situation can change within a period as short as a few months. Given the fluidity of conditions and the number of factors that will need to be considered when determining how and when to divest, it is important that Treasury identify the criteria it will use to evaluate the optimal method and timing for selling the government’s ownership stake. Determining when and how to divest the government’s ownership stake will be one of the most important decisions Treasury will have to make regarding the federal assistance provided to the domestic automakers, as this decision will affect the overall return on investment that taxpayers will realize from aiding these companies
Notice the use of future tense to describe these decisions? Not only is there no plan, there’s also no timeline and precious few staff to implement it. More importantly, there’s not much of a chance of a divestiture plan succeeding under any circumstances. Oh, and plenty of potential for unintended consequences. Hurray!
Moreover, whether enough time has passed for the impact of the structural changes to be seen is unlikely, especially given that the automakers have not completed restructuring, the economy is still recovering, and new vehicle purchases remain at low levels. For instance, although the federal Car Allowance Rebate System program resulted in a sales spike in August,16 September sales returned to historically low levels. These and other challenges are likely to delay the companies’ recovery beyond what it would be under more favorable economic circumstances.
As TTAC noted last Friday, “finding a real, sustainable bottom of the market from which to grow is not made easier by erratic bursts of stimulus frenzy.”
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